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How Understanding This Concept Will Open You Up to Greater Crypto Returns
Ethereum has been on a tear since announcing a merge date to begin the transition to Proof of Stake. Meanwhile, most alts haven’t been able to keep up with ETH’s performance. Yet, some projects our outperforming ETH. So let’s explore the halo effect and why some projects are beating the King Altcoin.
Crypto is a new asset class, and DeFi is even a more recent category within the crypto asset class. Valuing DeFi projects is abstract art at best and a monkey throwing a dart at a board at worst. When the entire market pumped after DeFi’s birth, every project rose with the rising tide. Now we are in our first DeFi bear market. The bear market can be a great learning environment for us to observe which projects outperform and underperform and why they are doing so.
At the time of writing, ETH has been up 45% over the past 30 days. Unfortunately, Bitcoin is up a comparatively more minor 15% during this period. While this isn’t good for a guy who recently turned Bitcoin Maxi during the bear market, I still welcome increased valuations in the space.
Ethereum has been pumping, but other smart contract platforms aren’t experiencing the same bullishness over the past 30 days- Solana is up 9%, Fantom is up 23%, Binance Coin is up 18%, Tron is up 4%, and Avalanche is up 25%…
